Audit 327017

FY End
2024-06-30
Total Expended
$31.17M
Findings
2
Programs
15
Organization: Capital University (OH)
Year: 2024 Accepted: 2024-11-01

Organization Exclusion Status:

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Contacts

Name Title Type
KSZUJCGYH5L5 Danny Burkholder Auditee
6142366292 Pam Lebold Auditor
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Notes to SEFA

Title: NOTE 1 BASIS OF PRESENTATION Accounting Policies: Expenditures reported on the schedule are reported on the accrual basis of accounting. Such expenditures are recognized following the cost principles contained in the Uniform Guidance, wherein certain types of expenditures are not allowable or are limited in reimbursement.The University has elected not to use the 10% de minimis indirect cost rate as allowed under the Uniform Guidance. De Minimis Rate Used: N Rate Explanation: The University has elected not to use the 10% de minimis indirect cost rate as allowed under the Uniform Guidance. The accompanying schedule of expenditures of federal awards ("schedule") includes the federal grant activity of Capital University and is presented on the accrual basis of accounting. The information in this schedule is presented in accordance with the requirements of Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards ("Uniform Guidance"). Therefore, some amounts presented in this schedule may differ from amounts presented in, or used in the preparation of, the basic financial statements. Because the schedule presents only a selected portion of the operations of the University, it is not intended to and does not present the financial position, changes in net assets, or cash flows of the University.
Title: NOTE 3 FEDERAL PERKINS LOAN PROGRAM Accounting Policies: Expenditures reported on the schedule are reported on the accrual basis of accounting. Such expenditures are recognized following the cost principles contained in the Uniform Guidance, wherein certain types of expenditures are not allowable or are limited in reimbursement.The University has elected not to use the 10% de minimis indirect cost rate as allowed under the Uniform Guidance. De Minimis Rate Used: N Rate Explanation: The University has elected not to use the 10% de minimis indirect cost rate as allowed under the Uniform Guidance. During 2024, the University distributed $0 in Perkins loans. Cash on hand at year end totaled $199,887. Loans outstanding at June 30, 2024, including the portion distributed from University funds, totaled $230,330. Loans outstanding at the beginning of the year and cash on hand are included in the federal expenditures presented in the schedule.
Title: NOTE 4 FEDERAL DIRECT LOAN PROGRAM Accounting Policies: Expenditures reported on the schedule are reported on the accrual basis of accounting. Such expenditures are recognized following the cost principles contained in the Uniform Guidance, wherein certain types of expenditures are not allowable or are limited in reimbursement.The University has elected not to use the 10% de minimis indirect cost rate as allowed under the Uniform Guidance. De Minimis Rate Used: N Rate Explanation: The University has elected not to use the 10% de minimis indirect cost rate as allowed under the Uniform Guidance. The University originates but does not provide funding for Federal Direct Loans ("FDSLs").The amount presented represents the value of new FDSLs awarded by the government during the year.
Title: NOTE 5 NURSING STUDENT LOANS Accounting Policies: Expenditures reported on the schedule are reported on the accrual basis of accounting. Such expenditures are recognized following the cost principles contained in the Uniform Guidance, wherein certain types of expenditures are not allowable or are limited in reimbursement.The University has elected not to use the 10% de minimis indirect cost rate as allowed under the Uniform Guidance. De Minimis Rate Used: N Rate Explanation: The University has elected not to use the 10% de minimis indirect cost rate as allowed under the Uniform Guidance. During 2024, the University distributed $67,500 in Nursing Student Loans, which included $0 of new federal funds. Cash on hand at year end totaled $126,008. Loans outstanding at June 30, 2024, including the portion distributed from University funds, totaled $446,100. Loans outstanding at the beginning of the year, loans made during the year, and cash on hand are included in the federal expenditures presented in the schedule.
Title: NOTE 6 NURSING FACULTY LOANS Accounting Policies: Expenditures reported on the schedule are reported on the accrual basis of accounting. Such expenditures are recognized following the cost principles contained in the Uniform Guidance, wherein certain types of expenditures are not allowable or are limited in reimbursement.The University has elected not to use the 10% de minimis indirect cost rate as allowed under the Uniform Guidance. De Minimis Rate Used: N Rate Explanation: The University has elected not to use the 10% de minimis indirect cost rate as allowed under the Uniform Guidance. During 2024, the University distributed $25,630 in Nursing Faculty Loans, which included $0 of new federal funds. Cash on hand at year end totaled $600,689. Loans outstanding at June 30, 2024, including the portion distributed from University funds, totaled $203,518. Loans outstanding at the beginning of the year, loans made during the year, and cash on hand are included in the federal expenditures presented in the schedule.

Finding Details

Program: Federal Pell Grant Program CFDA 84.063 Criteria: Per 34 Code of Federal Regulations (CFR) 690.62 Calculation of a Federal Pell Grant, the amount of a student’s Pell Grant for an academic year is based upon the payment and disbursement schedules published by the Secretary for each award year. The Uniform Guidance Compliance Supplement states that the Department of Education provides institutions Payment and Disbursement Schedules for determining Pell awards each year. The Payment or Disbursement Schedule provides the maximum annual amount a student would receive for a full academic year for a given enrollment status, Expected Family Contribution (EFC), and Cost of Attendance (COA). The Payment Schedule is used to determine the annual award for full-time, three-quarter time, half-time, and less-than-half-time students. Condition: The College’s system of awarding and disbursement of Pell Grants to students was not adequate to maintain compliance with Title IV regulations. Repeat Finding from Prior Year: No Questioned Cost: None Context: Out of the 40 students tested, 1 student was not properly awarded or disbursed Pell Grant aid based on the classes in which they began attendance. The student should have received $3,698 for Fall and Spring, respectively; however, only received $2,773 for the Fall semester, causing a total underpayment of $925. Effect: Capital University did not meet the requirement of ensuring that proper Pell Grant amounts are awarded and disbursed to students. Cause: The underpayment identified is due to an error in the Ellucian Colleague program. The program identified courses with similar names taken by the same student to not have credit hours. This caused the student's status to not correctly update in the system. Recommendation: An update to the Ellucian Colleague program should be made, that correctly identifies course names and numbers as credit hours taken during the semester. In addition, a level of review by the Student Financial Aid Department should be added to ensure the Pell amount awarded is in line with Title IV regulations. Management Response: Management acknowledges that there was an error in the amount of Pell awarded to the student. Capital University reviewed all Pell awards for 2023 – 2024 and discovered a total of 3 occurrences of a Pell Grant being under awarded totaling $4,159. Students impacted have been credited for any error in their initial 41. award. The University is reconfiguring the Ellucian Colleague program to ensure that this error does not occur in the future.
Program: Federal Pell Grant Program CFDA 84.063 Criteria: Per 34 Code of Federal Regulations (CFR) 690.62 Calculation of a Federal Pell Grant, the amount of a student’s Pell Grant for an academic year is based upon the payment and disbursement schedules published by the Secretary for each award year. The Uniform Guidance Compliance Supplement states that the Department of Education provides institutions Payment and Disbursement Schedules for determining Pell awards each year. The Payment or Disbursement Schedule provides the maximum annual amount a student would receive for a full academic year for a given enrollment status, Expected Family Contribution (EFC), and Cost of Attendance (COA). The Payment Schedule is used to determine the annual award for full-time, three-quarter time, half-time, and less-than-half-time students. Condition: The College’s system of awarding and disbursement of Pell Grants to students was not adequate to maintain compliance with Title IV regulations. Repeat Finding from Prior Year: No Questioned Cost: None Context: Out of the 40 students tested, 1 student was not properly awarded or disbursed Pell Grant aid based on the classes in which they began attendance. The student should have received $3,698 for Fall and Spring, respectively; however, only received $2,773 for the Fall semester, causing a total underpayment of $925. Effect: Capital University did not meet the requirement of ensuring that proper Pell Grant amounts are awarded and disbursed to students. Cause: The underpayment identified is due to an error in the Ellucian Colleague program. The program identified courses with similar names taken by the same student to not have credit hours. This caused the student's status to not correctly update in the system. Recommendation: An update to the Ellucian Colleague program should be made, that correctly identifies course names and numbers as credit hours taken during the semester. In addition, a level of review by the Student Financial Aid Department should be added to ensure the Pell amount awarded is in line with Title IV regulations. Management Response: Management acknowledges that there was an error in the amount of Pell awarded to the student. Capital University reviewed all Pell awards for 2023 – 2024 and discovered a total of 3 occurrences of a Pell Grant being under awarded totaling $4,159. Students impacted have been credited for any error in their initial 41. award. The University is reconfiguring the Ellucian Colleague program to ensure that this error does not occur in the future.